First 10,000 customers to get solar rooftop subsidy in Tamil Nadu

Friday, October 25, 2013: In order to promote domestic electricity capacity, the Tamil Nadu government is offering a capital subsidy of Rs 20,000 for every 1 kW solar rooftop system. This was promised by Chief Minister J. Jayalalithaa back in April.

According to the renewable energy development arm of the State Government, Tamilnadu Energy Development Agency (TEDA), the cost of a 1 kW solar rooftop system comes out to be Rs 1,00,000. The government will give a subsidy of Rs 30,000, with the investor paying only Rs 50,000. TN will offer another Rs 20,000. This subsidy will be offered on a ‘first come first served’ basis.

TEDA expects that the solar system will generate 1,600 units a year. Now at a tariff of Rs 5.75 per kWhr, the annual savings will be about Rs 9,200.

The subsidy will be given only to grid-connected, battery-less systems, and only for domestic consumers (‘LT-1A’ category), reports Hindu Business Line. Solar power generated is to be consumed within the building. Consumers may choose to buy the solar systems from a list of vendors approved by TEDA. TEDA will “float a tender for empanelling the vendors,” the GO says according to the report.

The subsidy is applicable for only 1 kW systems, that too only for the first 10,000 applicants.